Benzinga - by Zacks, Benzinga Contributor.
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in Badger Meter (NYSE: BMI) ten years ago? It may not have been easy to hold on to BMI for all that time, but if you did, how much would your investment be worth today?
Badger Meter's Business In-Depth
With that in mind, let's take a look at Badger Meter's main business drivers.
Incorporated in 1905 and headquartered in Milwaukee, WI, Badger Meter, Inc. is a leading provider of water solutions, which include flow measurement, quality and other system parameters. The company's products measure water, oil, chemicals, and other fluids and are known for accuracy, long-lasting durability, and for providing valuable and timely measurement data. The company's cloud-hosted software suite, BEACON, allows consumer engagement tools that permit end-water customers to view and manage their water usage activity. The ORION branded family of radio endpoints includes ORION (ME), ORION applications, and ORION Cellular for an infrastructure-free AMI solution.
Badger Meter's product lines fall into two categories — utility water and flow instrumentation. The utility water product line consists of either mechanical or static (ultrasonic) water meters and related radio and software technologies and services that are used by water utilities to generate water and wastewater revenues. Badger Meter estimates that about 70% of water meters installed in the United States have been converted to some form of radio solution technology.
The flow instrumentation product line mainly caters to water applications in the wider industrial markets. This product line consists of meters, valves, and other sensing devices for measuring and controlling the volume of liquids and gases, such as water, air, and steam, that pass through a pipe or pipeline. Badger Meter estimates that more than 90% of its products are used in water-related applications. Typically, flow instrumentation instruments are sold through manufacturers' agents and to original equipment manufacturers as the main flow-measuring component of a system or product.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Badger Meter ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in May 2014 would be worth $8,058.07, or a 705.81% gain, as of May 9, 2024, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 176.58% and the price of gold went up 72.10% over the same time frame.
Looking ahead, analysts are expecting more upside for BMI.
Badger Meter's first-quarter performance gained from robust customer demand for its differentiated smart water solutions and strong operational execution. Continued momentum in E-Series ultrasonic meters, cellular AMI solution, ORION Cellular endpoint sales and higher BEACON Software-as-a-Service sales is likely to drive top-line expansion. Its efforts to broaden the global footprint are creating a tailwind. Margins are gaining from higher volumes and structural positive sales mix trends. A debt-free balance sheet and synergies from acquisitions are other positives. However, management expects to witness tougher year-over-year comparisons as the year progresses and also expects higher expenses owing to incremental growth investments. An uncertain global macro environment, forex volatility and stiff competition are added headwinds.
The stock has jumped 26.18% over the past four weeks. Additionally, no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024; the consensus estimate has moved up as well.
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